Hospitality businesses have been warned they could be particularly vulnerable to tougher government rules
The hospitality industry has been named and shamed by the government for having one of the highest number of employers found to be abusing the immigration system.
Record numbers of firms have been banned from sponsoring foreign workers over the past year as part of a government crackdown.
Between July 2024 and June 2025, 1,948 licences allowing companies to bring in migrant workers were revoked across all areas of the economy– more than double the 937 licences revoked in the previous 12 months.
Hospitality, adult social care, retail and construction were among the sectors with the highest levels of abuse, according to government data.
Underpaying workers, failing to provide the promised work and allowing some individuals to circumvent immigration rules were all listed as reasons some firms lost their licences.
The government said rogue employers found to be flouting the rules could see their business ordered to close and face financial penalties and prosecution.
Mike Tapp, minister for migration and citizenship, said: “Those who abuse our immigration system must face the strongest possible consequences.
“We will not hesitate to ban companies from sponsoring workers from overseas where this is being done to undercut British workers and exploit vulnerable staff."
New government policies aimed at tightening up immigration rules came into force in July this year, including an increase in the eligibility threshold for skilled worker visas to graduate level. This meant many hospitality roles, including chefs, catering and events managers, were no longer eligible for new skilled worker visas.
Louise Senior, a senior manager at the global immigration law firm Fragomen, said the government was placing visa sponsors “at the top of their enforcement agenda”.
She added: “With the deployment of increasingly sophisticated means of detecting non-compliant practices, hospitality businesses could find themselves particularly vulnerable. This week’s announcement serves as a reminder that with ‘hospitality’ noted as a key sector at risk, businesses should ensure they are proactive in understanding their responsibilities – failing to do so could result in revocation, significant fines, high penalties, reputational damage and operational disruption.
The government said improved data and intelligence sharing with law enforcement meant more employers were now being held to account.
Based on current trends, the government expects sponsor revocations to be even higher over the next year.
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